New Delhi: India’s latest GDP figures have triggered a fresh political and economic debate after former Finance Secretary Subhash Chandra Garg questioned the headline 7.8% real GDP growth reported for the first quarter of FY 2026-27.

The National Statistics Office (NSO) reported strong growth, with real GDP rising 7.8%, while nominal GDP growth stood at 10.3% and GVA growth at 8.2%. The government presented the figures as evidence of the resilience of the Indian economy.

PM Modi Hails 7.8% GDP Growth

Prime Minister Narendra Modi described the Q1 performance as an “exemplary” achievement, highlighting India’s ability to maintain growth despite global uncertainties, oil-related pressures and supply-chain challenges.

Finance Minister Nirmala Sitharaman also pointed to the latest figures as evidence of the impact of economic reforms.

Subhash Chandra Garg Questions GDP Calculation

However, Garg has offered a sharply different interpretation of the numbers. He has questioned the GDP deflator and argued that when inflation and the revised base are considered differently, the effective growth rate could be substantially lower—around 2.6%, according to his interpretation.

The claim has become a major talking point among critics of the government, who argue that headline GDP growth does not necessarily reflect conditions such as employment, consumption and industrial demand.

Economists’ Exit Raises Another Question

The wider debate has also revived questions about the departures of several prominent economists from senior government and institutional positions.

Critics have pointed to former RBI Governor Urjit Patel, former RBI Deputy Governor Viral Acharya, former Chief Economic Adviser Arvind Subramanian, former Chief Economic Adviser Krishnamurthy V. Subramanian, Surjit Bhalla and former NITI Aayog Vice Chairman Arvind Panagariya.

Their departures had different stated reasons, while critics nevertheless see them as part of a broader debate over economic policymaking and institutional independence.

7.8% or 2.6%—What Is the Real Picture?

The central question remains: Is India’s economy genuinely growing at 7.8%, or does the methodology behind the latest GDP estimates warrant greater scrutiny?

For now, 7.8% remains the official GDP growth figure, while the 2.6% figure represents Garg’s alternative interpretation and has become the subject of intense economic and political debate.